5% rise in airfares found in quarter four last year

It was heard that Indian airlines claimed of slashing flights airfares after ATF prices came down but it has been revealed by an exclusive industry report that airfares actually risen by 5%. A report named The American Express Asia Pacific Business Travel Monitor report, revealed that due to reduction in competition and falling rupee has let airfares to increase quarter on quarter which is effective on selected categories only.

Moves have been made by domestic airlines in India to reduce fares and make it cheap flights, after ATF reduced by almost 50% last year due to fall in prices of crude. This reduction in airfares is effective only on certain categories, while in most of the segments it has been increased. Fares in India rose by 5% which is the highest quarterly rise of airfares across Asia Pacific region. Whereas full business class airfares shown 10% quarter –on-quarter increase in airfares. India published fares rose 15% on year, while they rose 26% in domestic and 13% in Intra Asia Pacific.

Business Travellers never demands for a luxury travel

A survey has been done regarding what a business executive demands while travelling, and was found that it wasn’t the luxury extras but the good service and basic efficiency. They want the things that can help in their official work; proper internet connection is their main priority. Now a day’s business professionals want a proper Wi-Fi connectivity so that they can complete their pending tasks before they reach somewhere for their meeting.

According to the survey the business travelers will go for the basic facilities no matter what is the price of Airline Tickets. Proper internet connectivity is the main priority for worldwide business travellers rather than a peaceful room, good transport and central location. Economic pressure has let the business professionals to think more about the basic facilities rather than the luxury requirements. The same is for the hotels they stay in, hotels must have proper internet connectivity rather than the luxury. Corporate companies have started looking more closely into the travelling expenses which has made the business travellers specially in Asia-Pacific to look for Cheap Air Tickets with basic faculties rather than having luxury flight experience and spending too much on the tickets.

British Airway’s equity stake in Go Air

The British Airway’s chasing a 25% stake in Indian Go Air airlines. The officials have decided to have a meet in London for the further discussions sources says that British Airways has tried Last Year to reach a code sharing agreement with Go Air. Go Air spokesperson says that the airlines has 2.3% share in the market and would welcome such a change in policy and British Airways refuses what is said.

Foreign airlines will be allowed to invest in domestic airlines with a cap of nearly 26% with India’s changed policy plan. Though Go Air faced losses last year still it is a closely held company with its financial numbers not in the public. The decision to scale up the fleet by 35 aircrafts will be fulfilled till March 2011, recently added six and will add 20 by end of this year.